Avangrid has finalized the sale of the Kitty Hawk North offshore wind lease area, located off the U.S. East Coast, to Dominion Energy for approximately $160 million. The agreement includes the lease area, which spans nearly 40,000 acres, at a price of about $3,000 per acre.
The sale price comprises a lease acquisition payment of $117 million, along with reimbursements for associated development costs. Avangrid's chief executive, Pedro Azagra, remarked, “Closing this transaction is a tremendous development for our key business objectives and strategic priorities, positioning us to pursue new opportunities for investment across our renewables portfolio.”
While Avangrid has sold the Kitty Hawk North lease, it retains ownership and rights to the Kitty Hawk South lease, which has the potential to deliver up to 2.4 GW of power to North Carolina, Virginia, or other states and private companies.
Azagra emphasized the company's commitment to advancing the clean energy transition in the United States, stating, “As we close this sale, focus on delivering on our capital investment plan, and continue the development of Kitty Hawk South, Avangrid is proud of its work to accelerate the clean energy transition in the United States.”
